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- High demand across all livestock sectors: Hay of any quality is needed right now. Farmers are preparing for lambing and calving, and many are desperate to secure enough feed to get them through. That pressure is keeping prices high.
- Extremely limited supply: Fodder is becoming harder to find each week. In many cases, there are no sellers behind the reported prices. Where hay is available, it’s quickly snapped up at over $500/t delivered in parts of SA, Victoria, and southern NSW.
- Southern NSW is no longer a reliable supply region: Southern NSW has historically filled shortfalls, but local stocks are now tightening. There is hope that recent rain in the central west of NSW, Riverina NSW, and northeast Victoria could lead to more hay entering the market, although it may be some time before that happens.
- Freight costs limit long-distance sourcing: With availability tight, freight plays a growing role in where hay can viably move. In some cases, the cost of transport is now a deciding factor in whether a trade goes ahead.
- Victorian drought zone expanded: The Victorian Government has officially expanded the drought zone to include parts of central Victoria, Wimmera and west Gippsland. In response, Victorian Farmers Federation President Brett Hosking met with Premier Jacinta Allan, pushing for meaningful support and fairer treatment of regional landholders under the Emergency Services Levy. Farmers are now calling for a flexible, multi-tiered drought support package that reflects the different levels of hardship across the state and better supports struggling producers.
- Federal Government drought funding announced: The Federal Government has committed an extra $36 million to extend the Future Drought Fund Communities Program, which aims to help drought-affected communities in South Australia and Victoria stay connected and supported. An additional $800,000 will go toward improving access to Rural Financial Counselling Services in the hardest-hit areas.
- Market caution remains key: Previously flagged concerns about hay trading are still in play. Unfamiliar traders continue to enter the market, increasing the risk for those who have built trusted relationships over time. Maintaining integrity and honouring contracts is more important than ever. Selling in stages is still advised to manage exposure and protect long-term business value.